Export Grants

Posts Tagged ‘exports’

The Buy America campaign has its sights set squarely on Brazil, India and China and other fast emerging markets as part of Obamas goal of doubling exports over the next five years. Francisco Sanchez, Commerce Under Secretary for International Trade told reporters that is where US efforts need to be focused noting that 95% of the worlds consumer base is outside of the United States, and it is that group is where the largest gains will be found.

The initiative to increase exports plans a two sided approach. Increased advocacy for exporters, and a stepping up of enforcement of U.S. trade agreements to ensure that commitments to open their markets are being met. The under-secretary is planning a tour of major economies starting March 29th, visiting Brazil, India, Saudi Arabia, Canada and Mexico. China is also on the list and there is growing pressure on the Obama administration to put pressure on the communist government on their monetary policy and other trade matters, however he made sure to not go to far:

we will clearly and assertively press Chinese on any concerns, but do that in a way that bolsters trade rather than damages it

Sanchez also stated that the Commerce Department hopes to work closely with the Small Business Administration to grow US companies that export through grants and financing opportunities.

Sanchez said the Commerce Department would work closely with the Small Business Administration to increase the number small and medium-sized businesses that export. It will also call on logistics companies such as the US Postal Service, Fedex and UPS to try and identify companies that are already doing business overseas and help them find new markets for their products. There are also a number of large infrastructure projects planned in Algeria and Libya that US construction companies may be able to win a share of the contracts.

Exports dropped 0.3% in so far in 2010, however economists predict this mearly to be a blip and exports will be be a bright spot for job creation through the rest of 2010. Except for Euope where the dollar has risen against the euro over worries about EU member nations debt crisis, the greenback has slid against other major currencies which has historically lead to an increase in exports due to foreign currecies purchase power.

In January the trade deficit shrank unexpectidly by 6.6% to $37.3 billion dollars, the biggest in over a year. Imports over the same period had dropped by 1.7% because more americans have decided to save their money rather go out and make purchases from manufactures abroad. Oil imports fell sharpy along with automobile sales from Japan and Europe.

The small drop in January was the first after eight straight months of increases. Nigel Gault, cheif economist at IHS Global Inisght said belives that:

We believe U.S. export growth will continue. This month’s drop in trade volumes doesn’t mean that the trade recovery is over.

The massive US debt is what is keeping the downward dollar low at the moment and making American exports more competative will help to even further close the trade gap. President Barack Obama has vowed to bring the deficit under control despite all this, but is seen as a more long term goal and exporters will be able take advantage of this for many years to come.